Introduction

Legend Capital is a boutique private equity firm founded in 2017 by Rich Boone and Michael Lovett. Our funds are focused on building small businesses into larger ones using scale and technology to enhance their profitability.

About

Legend Capital focuses on conservative investment opportunities with relatively small American businesses. The firm was founded on the premise of providing “regular” people with an outlet to make investment returns that are generally reserved for the very wealthy. To do so, Legend Capital pools resources from accredited investors who otherwise would not have access to private equity transactions that can produce higher than average returns. Those opportunities often require a minimum investment in the hundreds of thousands.

Legend Capital funds are focused on building small businesses into larger ones using scale and technology to enhance their profitability. Each fund is built with a specific investment strategy, which is outlined before the fund starts. All of Legend Capital’s investments are placed with businesses with whom we have an existing relationship, where there is a high level of visibility into the business’ operations, and where technology can dramatically increase earnings.

In the case of Legend Capital’s first two funds, Legend Capital Fund I LP and Legend Capital Fund II LP, we have partnered with Vagabond Vending – a six year old business that builds software, communications and operations technology for the $26 billion U.S. vending industry. These funds seek to help vending operators deploy technology that can substantially increase their profits and also assist Vagabond customers who are already high-producers expand their business in other ways.

In raising money for these funds, Legend Capital identified an opportunity in the market for a new company that could take advantage of an extremely favorable acquisition environment in the vending industry and leverage industry leading technology to transform under-performing, small to mid-market vending operations into a consolidated and highly-profitable company

That opportunity became Legend Commerce, which opened its first location in Connecticut in 2018 and has since expanded its focus across New England and the Mid-Atlantic. What started as a $3.5 million operator is on track to be a $30 million company in its second year of operations, with plans to exceed $100 million in its third. Legend Capital Fund III LP, in partnership with a larger private equity firm, provided the seed money for the company.

Legend Commerce is a strong and growing company, well on its way to becoming a major player in the industry. However, it is not currently in position to take advantage of opportunities outside its region. Accordingly, Legend Capital is planning a second company focused on the West Coast, Capital Provisions. That company will build on the lessons learned with Legend Commerce, but will also employ its own unique strategies.

The new company, Capital Provisions, will initially be based in Los Angeles and will implement a scalable business model and grow through tuck-in acquisitions throughout California and the Western States. In 5 years, Capital Provisions’ base case plan is to create a $25 million company with over 5,000 vending machines and 100 micro markets. However, we believe there is an opportunity to grow to over $100 million.

Legend Capital has assembled an unbelievably strong team for Capital Provisions and expects to begin operations in July of 2020. Accordingly, we recently launched our latest fund, creatively named Legend Capital Fund IV LP, and are currently taking subscriptions from accredited investors.

Founders

Rich Boone is a Partner at Wilson, Elser, Moskowitz, Edelman & Dicker LLP in New York. Rich is a 1996 graduate of the College of William and Mary (B.A. Economics and Government) and a 2001 graduate of the University of Virginia School of Law (J.D.), where he served as Editor-in-Chief of the Virginia Journal of Law and Technology. Prior to law school, Rich worked as an analyst in the technology practice of Andersen Consulting (now Accenture). Upon graduation from UVA, Rich was a law clerk to Sr. Justice Henry H. Whiting on the Supreme Court of Virginia. From 2002 until 2010, Rich was an associate in the Washington, DC office of Jones Day, defending claims involving corporate and professional liability. From 2010 to 2015, Rich worked for a DC-based boutique firm representing major insurers in corporate and professional liability coverage disputes across the United States. In 2015, Rich moved to New York City to join Wilson Elser, where he continues to litigate substantial corporate and professional liability insurance coverage matters but also maintains a significant practice defending insureds in such claims. Since 2012, Rich has also served as an advisor to various technology startups.

Michael Lovett is the founder and CEO of Vagabond Vending LLC. Michael is a 2000 graduate of the College of William and Mary (B.B.A. Finance). In 2012, he founded Vagabond, which provides technology solutions for small and mid-sized vending operators, and remains responsible for the corporate, capital, and strategic direction of the company. Michael brings over fifteen years of experience in entrepreneurial startups in the IT services, software, and telecommunications space and has significant experience in developing international partnerships. He also founded CirrusWorks, a networking products company based in Washington, D.C. Prior to CirrusWorks, Michael was an early employee at Core Communications, where he conceived and launched Critical Network Productions, a telecom systems integration business unit that became the impetus for Swisscom’s acquisition of Core in 2006. Michael led the global enterprise solutions group and expanded Swisscom’s operations into Asia, India and the Middle East.